Thrift Savings Plan (TSP) Loan Calculator
Monthly Payment: $0.00
Total Interest: $0.00
Total Payment: $0.00
Thrift Savings Plan (TSP) Loan Calculator
The Thrift Savings Plan (TSP) Loan Calculator is a handy tool designed to help federal employees and uniformed service members estimate the repayment amounts for loans taken from their TSP accounts. Whether you’re considering a general purpose loan or a residential loan, this calculator helps you understand how loan repayments will impact your finances.
What Is a Thrift Savings Plan (TSP) Loan?
The TSP loan program allows eligible participants to borrow money from their retirement savings with a structured repayment plan. There are two main types of TSP loans:
- General Purpose Loan: For any personal expense, with a repayment term of up to 3 years.
- Residential Loan: Specifically for purchasing or building a primary residence, with a repayment term up to 15 years.
Borrowers repay the loan with interest, which is credited back to their TSP accounts.
Why Use the TSP Loan Calculator?
Taking a loan from your retirement account is a significant decision. This calculator helps you:
- Estimate your monthly loan payments based on loan amount, term, and interest rate.
- Understand the total cost of borrowing, including interest.
- Plan your budget to ensure timely repayment.
- Compare different loan amounts and terms to find the best fit.
Key Inputs
To calculate your payments, enter:
- Loan Amount: The amount you wish to borrow from your TSP.
- Loan Type: General purpose or residential.
- Loan Term: Number of months for repayment (up to 36 months for general, up to 180 months for residential).
- Interest Rate: The current TSP loan interest rate, which is based on the G Fund rate plus 1%.
Who Should Use This Calculator?
- Federal employees considering borrowing from their TSP.
- Service members evaluating loan repayment options.
- Financial planners advising clients on retirement loans.
- Anyone seeking clarity on TSP loan costs and budgeting.
Benefits of Using This Calculator
- Provides clear insight into monthly repayment amounts.
- Helps borrowers avoid missed payments and penalties.
- Assists in making informed decisions about borrowing from retirement savings.
- Supports financial planning with realistic repayment expectations.